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Part 1

Marketing Manipulation and Persuasion in the 20th Century

It is impossible to appreciate the global role of AI in our purchases and our lives without understanding human manipulation through marketing. It is human nature to accept influence. Humans are dominated in a relationship comparable to the situation where the masochist needs a sadist.

Manipulation in business occurs in many forms. When you go inside a supermarket, you will notice that there are marketing traps everywhere in the store's layout. For example, think about when you go to the store to buy water bottles. Chances are, you typically decide to purchase the more expensive six-pack of water bottles instead of the cheaper option of buying six individual water bottles. Have you noticed this? Essentially, you pay for the plastic that enables you to carry the pack. People think the multi-pack offers must represent a better deal than buying individual units of the same product, but this thinking can lead consumers astray. It is not unheard of for the multipacks to of fer worse, not better, per-unit value to the consumer. Sometimes consumers notice this, and it annoys them because they find it deceptive. As one article about such phenomena concludes, “don't cruise the aisles without a pocket calculator, and if a special offer is advertised work out why it is so special and for whom.”

You have little chance of winning against marketers in this game of manipulation. Even though you may think you are smarter, basic practices such as pricing products one cent below a whole number(e. g. , $4.99 instead of$5.00)can be an effective method for increasing purchases. Although many reasons for this have been suggested, a commonly proposed explanation is that consumers simply tend to drop off, or pay less attention to, the rightmost two digits.

Consider also the“buy one, get one free”marketing campaigns that crop up everywhere. When the possibility of 33% off a product is given or the same product with 33% more quantity, most consumers view these options as essentially the same proposition. But the discount is a better deal. The Economist attributes this phenomenon to the fact that most shoppers are“useless at fractions”—they don't realize, for instance, that a 50% increase in quantity is the same as a 33% discount in price. What is the upshot of this reality? “Shoppers routinely bite on offers that have worse value because they do the math incorrectly, and perhaps also because they're infatuated with the idea of getting something extra for free. The prospect of receiving something for nothing has been demonstrated to make consumers do some pretty irrational things, including buying goods they otherwise would not have and being far more likely to order items online with free shipping, regardless of the overall expense.” In another marketing experiment involving hand lotion in an actual store, researchers sold 73% more when it came in a bonus pack than when it was priced at a discount with the same exact unit price. The whole concept of manipulating people through a pricing strategy is offering a product—the same product—at dif ferent prices. Think about it:when you buy mineral water, you are going to have several options varying in quantity and price. When you book an airline ticket online, companies are using a tactic known as yield marketing to sell the same seats at different prices based, for example, on whether you book in advance, travel for fewer than 14 days, stay for a weekend, travel in different classes, or have miles on your loyalty program. Many options will be offered for what is ultimately the same trip. It is practically implicit in our society that different people pay for the exact same goods at different prices.

Perhaps you were already aware of these examples. Did you change your purchase habits? You did not, did you? And why would you? You are in a sadomasochistic relationship, after all.

With online shopping, algorithms are studying your path online and recording your preferences. Your price data are registered. Companies know the price that you are ready to pay. Above a certain limit, the computer knows what is too expensive for you. Below a certain price, it knows what level of quality is insufficient. You do not stand a chance of avoiding manipulation because the price has been decided for you.

Let us now go into detail on the concept of manipulation by companies of their consumers. okYVHPxcPz2RGNtrbjRueAyxEfVLo01MdO1nukaBQe53/WXZ7svKSzWZjvpr9TEu

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